Financing

Interest
rates can vary based on your credit score. The better your credit,
the better the interest rate you will typically be offered.

Ask your lender or mortgage broker for itemized lists of loan fees for services such as appraisals and credit reports.

Check
to see if the interest rate being offered to you is current. Rates can
change daily, so find out if the rate you're quoted is the lowest for
the day or for the week.

Avoid mortgages that have prepayment penalties.

There
are many lenders out there and many types of loans. When looking for a
loan, be sure to shop around to find a mortgage banker whom you can
trust, and someone with whom you feel comfortable. Reputable lenders
will be able to answer questions for you such as:

Can I get a Good Faith Estimate? Good
Faith Estimates are required by law. This estimate will give you an
idea of all of the costs the lender will charge you. While these are
not necessarily firm quotes, they do provide a good estimate of what
your fees will be.What are all of the costs I can expect to pay? This
should include any appraisal fees, your credit report, recording fees,
taxes, deed preparation and anything else you will be responsible for
paying at closing. Do you offer rate locks? Building
a new home takes time. Rates can fluctuate substantially in the months
it takes to build your new home. It may be beneficial to you to
lock-in an interest rate a month or two prior to when your home is
scheduled to be completed. Ask your lender if they can lock-in an
interest rate, how much that rate lock will cost you, and for how long
the interest rate will be locked in.Which loan is best for me? Don't be afraid to ask your lender the differences between loans:Fixed Rate loans For
those of you who like to know exactly what your house payment will be
every month, you may want to consider a fixed-rate mortgage.

Advantages of a fixed-rate mortgage:

You want to know exactly what your monthly payment will be for life of loan

You believe interest rates could rise in the next few years

You plan to own your home for many years to come

Adjustable Rate loans You could save with a lower adjustable-rate mortgage.
Adjustable-rate mortgages offer lower rates for an initial payment
period (typically 1, 3, 5, 7 or 10 years). ARMs can be a good choice for
people in certain situations, such as rising income expectations or
short-term ownership. After the initial lock-in period, mortgage payment
rate and loan payments vary. Because interest rates and payments can
and probably will increase, home buyers considering this type of
mortgage should be prepared financially for a possible increase in rate
and/or payments.

Why choose an adjustable-rate mortgage?

Lower initial monthly payments than a fixed-rate mortgage

May be advantageous if you plan to own your home for 10 years or less

If you believe interest rates will be better than current rates when your ARM adjusts

Interest Only loans Interest-only
loans have an initial period of time when you pay only interest. This
is followed by a period of time when your payment goes up in order to
pay down the loan's balance. This is different than traditional
mortgages, where the payment consists of principal and interest for the
life of the loan.

Why choose an interest-only mortgage?

If
your income fluctuates (self-employed, commissioned or on a bonus
schedule), you can choose to make larger payments toward the principal
when it is convenient

You have other needs for your cash each month and want the most flexible cash flow options

You expect to own your home for a short period of time and you believe you will make money on the resale of your home

Government Loans FHA loans
are ideal for many first time home buyers. This program is under the
U.S. Department of Housing and Urban Development. Please click here for HUD's website and more information on FHA loans.

Why choose an FHA loan?

If
you have less than 20% down payment on your home, the mortgage
insurance is cheaper on an FHA loan than on a conventional loan

FHA typically offers very attractive rates

Criteria for credit scores & underwriting are less stringent on an FHA loan

Down payment requirements are typically less than on a conventional loan

VA Loans are ideal for veterans. This program falls under the U.S. Department of Veterans Affairs. Please click here for more information on VA loans.